AT&T Inc. (T)

Leap Wireless (LEAP+3.1%) is closing with a solid gain after the WSJ reported Deutsche Telekom is preparing a higher bid for prepaid rival MetroPCS. Leap, which had 45.4% of its float shorted as of March 15 (that's actually down from late-2012 levels), has often risen and fallen on M&A speculation.

Verizon (VZ) doesn't "currently have any intention to merge with or make an offer for Vodafone (VOD), whether alone or in conjunction with others," the telco announces, addressing an FT report about a possible joint bid with AT&T (T). Verizon does reiterate it "would be a willing purchaser" of Vodafone's 45% stake in Verizon Wireless, but that's pretty well-known. VOD-3.9% AH. VZ-0.8%. T-0.3%.

Verizon Communications (VZ) and AT&T (T) have reportedly been working on a $245B breakup bid for Vodafone (VOD) whereby Verizon would realize its long-held dream of gaining full control of Verizon Wireless and AT&T would obtain Vodafone's non U.S. assets. "Usually reliable people" tell the FT that Verizon and AT&T would offer 260p a share in what would be the biggest takeover in history. Vodafone shares are +4.8% at 195.64 pence in London.

BlackBerry (BBRY-6.9%) plummets as the WSJ reports AT&T (T) "doesn't appear to be highlighting" the Z10 on its launch day, or "giving it prominent shelf space at its stores." The paper observes "fewer than 20 people" arrived at two Manhattan AT&T stores to see the Z10, and that a San Francisco store chose to display it "at a back corner of the store, away from a large sign advertising the iPhone 5." (earlier)

AT&T (T) will sell the BlackBerry Z10 (BBRY+5.2%) for $200 with a 2-year contract, starting on March 22. AT&T will also sell BES 10 to enterprise accounts. The announcement seems to be giving a lift to heavily-shorted BlackBerry - Bloomberg reported of a March 22 Z10 launch date last week. (PR)

Leap Wireless (LEAP-7.7%) falls after missing Q4 revenue estimates and reporting a 337K subscriber net loss - that's worse than 269K net loss reported for Q3, and evidence of further share losses. Churn was 4.6%, down from Q3's 4.8% but up from 3.9% a year ago, and cost per gross add rose 17% Q/Q and 53% Y/Y to $363. ARPU rose slightly to $42.74, a 4G roaming deal has been signed with an unnamed carrier, and a dispute with Sprint (S) over a wholesale deal has been settled. Shares have been range-bound since last summer. CC underway (webcast). (PR)

Leap Wireless (LEAP+3.5%) jumps to $6.44 after catching an upgrade to Outperform from Wells Fargo, which now thinks the company is worth $10-$15/share. Worth to a potential suitor, that is: Leap has been bought and sold based on its M&A prospects for months. 42.4% of the float was shorted as of Jan. 31.

Leap Wireless (LEAP+4.3%) spikes to $6.01 on an upgrade to Strong Buy from JANCO Partners, which argues shares have declined even as nothing has happened to make the firm change its $7.50 PT. Like others, JANCO sees the struggling prepaid carrier as an attractive M&A target thanks to its spectrum, and believes recent spectrum deals (I, II) bode well for Leap's buyout price. Q4 results are due on Feb. 20. (Jefferies downgrade)

Leap Wireless (LEAP-6.2%) slumps on a downgrade to Underperform from Jefferies, which notes business trends are weak and say it doesn't view the carrier's spectrum (which has made it the subject of non-stop M&A speculation) a "must-have" asset. Moreover, even if there is interest in Leap's spectrum, Jefferies doesn't activity picking up until 2H (i.e. a point where T-Mobile/MetroPCS and Sprint/SoftBank/Clearwire will have likely closed).

It's time for another dose of Leap Wireless (LEAP+9.7%) M&A speculation. Shares rallied over the course of the day after Guggenheim's Shing Yin argued there's a 70% chance MetroPCS (PCS) will make a bid after finishing its merger with T-Mobile USA. Six weeks ago, Yin claimed Sprint might make a bid for MetroPCS within four weeks. Leap, which had a whopping 61.5% of its float shorted on Dec. 14, reportedly held talks at one point about a 3-way deal with MetroPCS and T-Mobile.

"It's hard for me to imagine that what Dish wants is Clearwire ... It could be a chess move to get a partnership with Sprint," opines Bernstein's Craig Moffett. Jefferies and Macquarie also think Dish's (DISH+2.1%) $3.30/share offer for Clearwire (CLWR+7.7%) is an attempt to cut a deal with Sprint (S-1.4%), long named as a potential 4G partner but currently in the midst of selling itself to SoftBank (SFTBF.PK). Macquarie adds a $3.50-$3.75/share Sprint bid might be needed to get Dish and dissident shareholders to back down. PCS +1.8%. LEAP+0.9%.

AT&T (T-2.5%) remains negative after reporting it sold 10M+ smartphones in Q4. One concern: smartphone subsidies will depress AT&T's Q4 margin, and since much of Ma Bell's base already owns a smartphone, the service revenue benefit might not be huge. Apple (AAPL+0.1%) has given up its early gains. With research firms having reported the iPhone is doing very well in the U.S relative to Europe/China, sales concerns mostly revolve around international markets. Meanwhile, Tim Cook is paying another visit to China - is he there to nail down an elusive China Mobile deal?

Akamai (AKAM) +6.8% after announcing a long-rumored CDN reseller deal with AT&T (T). The companies say they'll offer "an exclusive suite of global CDN and telecom solutions" that rely on Akamai servers deployed on AT&T's network, and which will be jointly managed. Dan Rayburn reported in August Akamai was willing to guarantee AT&T $100M or more in sales, far more than Limelight (LLNW) was offering. The deal is a coup for Akamai, especially since many carriers are looking to offer home-grown CDNs. (PR)

AT&T Inc, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the United States and internationally. The Company has three reportable segments: Wireless, Wireline, and Other.